Levi Strauss shares slip ahead of Q2 earnings report as investors await impact of FIFA World Cup campaign

Shares of Levi Strauss & Co. declined on Wednesday as investors awaited the denim maker’s fiscal second-quarter earnings report, with the market closely watching whether its high-profile FIFA World Cup marketing campaign has translated into stronger sales growth.

The company is scheduled to announce its quarterly results after the closing bell. Analysts expect Levi Strauss to report earnings of 24 cents per share on revenue of $1.52 billion, representing year-over-year growth of 9% and 8.6%, respectively.

The expected results mark a slowdown from the previous quarter, when Levi Strauss posted earnings of 42 cents per share on revenue of $1.7 billion. However, analysts noted that such seasonal declines are common in the apparel industry as consumer demand typically shifts between the spring and summer shopping periods.

Wall Street sentiment toward the stock remains positive. Thirteen of 15 analysts covering Levi Strauss rate the shares as a “buy,” with a consensus price target of $27.73, suggesting potential upside of about 12% from recent trading levels near $24.66. Earnings estimates have increased by 1.6% over the past 60 days, indicating improving confidence ahead of the results.

At 1:14 p.m. EDT on Wednesday, Levi Strauss shares were down 1.80%, falling $0.45 to $24.21.

Recent analyst actions have also been supportive. JPMorgan Chase raised its price target for Levi Strauss to $32 from $30 on July 2, while Telsey Advisory Group increased its target to $30 from $27 on the same day.

The biggest question for investors is whether Levi Strauss’ unusual World Cup marketing push will deliver measurable business results.

The campaign gained attention after FIFA required Levi's Stadium to cover its prominent logo with white tarps and temporarily rename the venue “San Francisco Bay Area Stadium” during the tournament. Instead of treating the move as a setback, Levi Strauss turned the situation into a global marketing opportunity.

The company changed its Instagram profile image to feature the covered logo and expanded the campaign across stores in markets including Paris, London, Brazil, Mexico and Hong Kong.

Analysts said the campaign generated more than 500 million media impressions, with brand mentions increasing 44% and consumer engagement rising 400% since the World Cup began. Investors will now assess whether the increased visibility is translating into higher sales, particularly in international markets where the tournament has boosted brand awareness.

Beyond the World Cup campaign, analysts are focused on Levi Strauss’ broader transformation into what CEO Michelle Gass describes as a “DTC-first denim lifestyle brand.”

The company has been diversifying beyond its traditional denim business, with women’s apparel now accounting for around 38% of sales and non-denim products representing about 40% of revenue. Direct-to-consumer channels have also expanded significantly, contributing nearly 49% of sales compared with 36% in fiscal 2021.

Investors are expected to examine whether these strategic changes can support long-term growth as Levi Strauss navigates shifting consumer preferences and a competitive global apparel market.

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